Printer-friendly version
By Mike Allen
Image: rendering of new community center
December 15, 2025 (Santee) -- Santee’s City Council has unanimously approved a contract to build its long-planned Community Center next to the Cameron YMCA for a total cost of $26.8 million, or $3.3 million more than the city staff’s estimate given in April.
At the Dec. 10 meeting, the City Council also approved a 100-unit condo project at a five-acre lot next to Walmart and behind the Post Office.
The cost for the 12,500 square foot, two-story Community Center increased due to raising the change order amount from 10 to 15 percent or about $1 million. Other reasons were changes in the design and added improvements to the parking lot, said city staffer Stephen Miller.
Another big reason besides inflation is the overall cost for building anything in California. When the city put out the project to bid in the spring, the city’s engineer estimated the construction contract would be $18.5 million.
The seven bids received in the summer ranged from $$20.6 million to $23.9 million. The city selected Barnhart Reese Construction Inc. which made the low bid of $20,598,331. Other expenses are for design and bidding, change orders, and contract administration, bringing the grand total to $26,813,280.
While the cost increase riled some councilmembers, the prevailing sentiment was to bite the bullet and move to pay it now before the cost gets even higher.
“We’ve gotta get this locked in and get it done otherwise we’re going to be chasing this forever,” said Councilman Rob McNelis.
Councilman Ronn Hall, who took over the revolving title of Vice Mayor, said the staff needs to be better at estimating contracts presented to the council. “My biggest concern is here we are again, looking for money,” he said. “Are we going to be back next April, looking for another $3 million? I want to make sure this (final cost) is it.”
Hall also told staffers to ensure the construction job “goes smoothly and we don’t go over budget again.” The center will feature flexible space arrangements so it can be used by youth, teens, and seniors. It will also serve as a backup city emergency operations center. It will not contain either a gymnasium or library, two formerly considered uses.
When the estimated cost for the Community Center rose earlier this year, the Council approved loaning funds from its general fund reserve balance to its capital improvement fund to make up the shortfall. That loan doubled to $6.6 million, and will be fully repaid by FY 2028-29, which begins in June 2028, according to city staffers.
The two-phased construction project will start in February with a new parking lot north of the YMCA that will be finished by June. The second phase, the center building and surrounding area, will begin as soon as the parking lot is finished in June and should be completed by September of 2027, according to the approved plan.
Mayor John Minto, who voted against the center in 2019 because it didn’t include a library, asked about the security of the building, and was assured when the facility is locked that only authorized staff can enter. “I think this is a great project and I’m glad to see it finally happening,” he said.
At the same meeting, the Council approved a 100-unit townhouse project at a vacant 5.26-acre lot hidden behind the U.S. Post Office and just south of the city’s Walmart store. Walmart had planned to expand the store to create a supercenter in 2010 and did an environmental study to support the expansion, yet in 2017 it withdrew those plans.
The new project, called The Exchange by developer Borstein Enterprises of Los Angeles, consists of 18 three-story buildings and features four- and three-bedroom models. Each unit comes with two parking spaces, and the complex has 29 guest spaces.
Eric Fowler, senior vice president of Borstein, said the units range in size from about 1,400 to 1,800 square feet, and feature a “contemporary architectural” style that fits with the style of the surrounding retail commercial buildings. “This is the perfect urban infill project for a project that’s not in a big city,” he said.
Coincidently, this residential project will help to replenish the city’s reserve funds because it will generate nearly $3.5 million in developer impact fees.
As with any new condo project, parking or lack of it is top of mind for some council members. McNelis asked that the road leading into the complex offer angled parking to accommodate future guest overflow, a request that Borstein acknowledged. The project will provide landscaping along the road. but it was unclear who would pay for maintaining it.
Minto said he the project will make a big difference in that area which has been the site of illegal activity and homeless squatting. Fowler confirmed they had to chase people off the lot, which his company purchased from Walmart in 2022, and got rezoned from commercial to R-22, meaning it can accommodate 22-30 units per acre.
Hall asked if any of the units were designated for low-income buyers and was told no. Santee recently changed the zoning from low income to market rate housing for a 52-unit project on the old Pure Flow Water site off Mission Gorge Road.
Recent comments